AcBel Polytech Inc. 康舒科技

Green Procurement

Responsible Procurement

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AcBel promotes a sustainable supply chain management mechanism, utilizes internal risk management, and establishes an investigation and audit mechanism for suppliers and raw materials. By so doing, we ensure that raw materials provided by suppliers are in compliance with international human rights requirements, lead-free, halogen-free, and EU regulations on banned substances such as RoHS and REACH. It is our corporate value to provide products and services in accordance with international human rights, environmental regulations and directives responsibly.

We abide by green procurement principles and have established a comprehensive supplier due diligence and hazardous substance testing process that ensures raw materials are in compliance with international labor and human rights and environmental management substance regulations.

Raw Material Procurement Regulations:
In accordance with international human rights standards and regulations, we have established supplier due diligence procedures to investigate the sources of raw materials and components without human rights violations in order to meet the expectations and requirements of our customers.
AcBel formulated the "Environmental Management Substance Specications" in accordance with international environmental regulations and customer requirements as a standard for inspection and screening of banned or restricted substances in the procurement of raw materials and components.

Green Raw Material:
We manage the procurement of raw materials at the source and carefully review the process changes so as to avoid the risk of using raw materials containing harmful substances. Therefore, AcBel is consistently committed to collecting international and local environmental laws and regulations on a regular basis, inventorying substances that may be banned in the future, as well as cooperating with suppliers to nd alternative raw materials in response. Early notication of EOL (End-of-life) of raw materials by suppliers and certication of alternative raw materials are provided to customers to initiate the change of materials for parts in advance.
Special component materials that are moisture sensitive (MSL) and require ESD protection are stored in special material warehouses with constant humidity and temperature, while the storage is controlled by the manufacturing cycle in order to ensure the stable quality of raw materials with the use of an information management system.
AcBel joins hands in hands with our customers and suppliers to develop the addition of recycled parts for the purpose of reducing unnecessary resource waste, maximizing resource utilization as well as for pursuing environmental friendliness.

Raw Materials Risk Management

AcBel aims at avoiding factors that may affect product delivery or, in severe cases, corporate goodwill and revenue, including unstable quality in raw materials from suppliers or shortage/breakage in raw materials supply, etc. Therefore, we conduct risk management of key raw materials through "procurement attributes": a single source of procurement, high technology threshold, high price fluctuation, and components that are easily affected by suppliers' manpower and production capacity. In 2021, we identified semiconductor parts, capacitors, printed circuit boards, and magnetic elements as our critical components, with one more item of capacitors than in 2020.

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Local Procurement Implementation

In consideration of reducing the carbon footprint of material transportation, delivery speed, and supply chain clustering, AcBel selected local procurement as a priority in its material procurement strategy with the purpose of increasing operational resilience. In 2021, AcBel's main production bases are in Taiwan and China, with 90.96% of local suppliers. Furthermore, the supply chain of the local electronic component manufacturing industry in the Philippines has not yet taken shape, resulting in a low number of suppliers in Southeast Asia.

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In 2021, given the continued severity of the pandemic and the need to ensure smooth production, AcBel has integrated key suppliers to provide flexible material supply and alternative materials for each production base. Furthermore, we prioritize procurement based on the stability of material supply to ensure smooth production of products and on-time delivery to customers. Therefore, in 2021, the proportion of local procurement in each plant was lower than that in 2020. However, we still achieve the green material procurement target of 100% leadfree and halogen-free and EU RoHS standards.

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Constraining Use of Conflicting Minerals

In accordance with RBA's "Responsible Sourcing of Minerals" requirements and OECD's "Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High Risk Areas," AcBel formulated a conflict minerals sourcing policy that bans the use of conflict minerals (gold, tantalum, tin, tungsten, and cobalt), which required suppliers to cooperate and communicate it to their next-tier suppliers. In the meantime, a due diligence program, the Responsible Minerals Initiative (RMI), requires suppliers to respond to the Conflict Minerals Reporting Template (CMRT) and Extended Minerals Reporting Template (EMRT) on a regular basis. This demonstrates AcBel's support of the 100% conflicting minerals ban policy and is posted on the official company website to ensure that the metal procurement process is in compliance with international standards.

In addition, in the supplier conferences we promote the CMRT and EMRT conflicting minerals investigation and hazardous substances investigation requirements. In 2021, a total of 307 manufacturing suppliers (more than 80% of total transactions) completed signing the declaration of "Restricted Use of Conflict Minerals Commitment" with AcBel. Moreover, a total of 247 suppliers (more than 60% of the total transactions) have completed the submission of CMRT and EMRT declarations. No violations of the policy regarding the use of banned conflicting minerals were found through the investigation.